The (Foreign Exchange) Forex Trading Market Explained.
 

Today's Forex Outlook

FOREX Trading Fundamentals

online FOREX trading in the foreign exchange market

Online FOREX trading is a huge business

The Foreign Exchange Market – better known as FOREX - is a world wide market for buying and selling currencies.  It handles a huge volume of transactions 24 hours a day, 5 days a week.  Daily exchanges are worth approximately $1.5 trillion (US dollars).  In comparison, the United States Treasury Bond market averages $300 billion a day and American stock markets exchange about $100 billion a day.

The Foreign Exchange Market Established

The Foreign Exchange Market was established in 1971 with the abolishment of fixed currency exchanges.  Currencies became valued at 'floating' rates determined by supply and demand.  The FOREX grew steadily throughout the 1970's, but with the technological advances of the 80's FOREX grew from trading levels of $70 billion a day to the current level of $1.5 trillion.

The FOREX is made up of about 5000 trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency exchange.  There is no centralized location of FOREX – major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt, and all trading is by telephone or over the Internet.  Businesses use the market to buy and sell products in other countries, but most of the activity on the FOREX is from currency traders who use it to generate profits from small movements in the market. 

Even though there are many huge players in FOREX, it is accessible to the small investor thanks to recent changes in the regulations.  Previously, there was a minimum transaction size and traders were required to meet strict financial requirements.  With the advent of Internet trading, regulations have been changed to allow large interbank units to be broken down into smaller lots.  Each lot is worth about $100,000 and is accessible to the individual investor through 'leverage' – loans extended for trading.  Typically, lots can be controlled with a leverage of 100:1 meaning that US$1,000 will allow you to control a $100,000 currency exchange.

There are many advantages to trading in FOREX.

· Liquidity - Because of the size of the Foreign Exchange Market, investments are extremely liquid.  International banks are continuously providing bid and ask offers and the high number of transactions each day means there is always a buyer or a seller for any currency.
· Accessibility – The market is open 24 hours a day, 5 days a week.  The market opens Monday morning Australian time and closes Friday afternoon New York time.  Trades can be done on the Internet from your home or office.
· Open Market – Currency fluctuations are usually caused by changes in national economies.  News about these changes is accessible to everyone at the same time – there can be no 'insider trading' in FOREX.
· No commission – Brokers earn money by setting a 'spread' – the difference between what a currency can be bought at and what it can be sold at.

How does it work?

Currencies are always traded in pairs – the US dollar against the Japanese yen, or the English pound against the euro.  Every transaction involves selling one currency and buying another, so if an investor believes the euro will gain against the dollar, he will sell dollars and buy euros.

The potential for profit exists because there is always movement between currencies.  Even small changes can result in substantial profits because of the large amount of money involved in each transaction.  At the same time, it can be a relatively safe market for the individual investor.  There are safeguards built in to protect both the broker and the investor and a number of software tools exist to minimize loss.

Google

 

Profitable Trends Forex System

Imagine having a trading system that pulls massive profits for you every single day ....

Now, a veteran trader reveals his exact system for trading any market successfully.

Learn how to use his system and get the same amazing results that he achieved:

Discover How You Too Can Achieve This Here

* Why you don't need to predict anything to make money on the markets !

* How you can identify each day's hottest trades and exploit them !

* How to take advantage of big trends and ride them until the end !

* How to make more than 600 pips a month spending as little as 2 minutes a day!

Introduction to Online Forex Trading
Current Forex Currency Rates
Forex Trading
How to Get Started In FOREX Trading
FOREX versus Futures Market
FOREX versus Stocks
FOREX Trading Philosophy
FOREX Tools
Fundamental Analysis In Forex Trading
Forex Technical Analysis - Part 1
Forex Technical Analysis - Part 2
FOREX Trading Strategies
Trading Currencies on Margin
Currency Option Marketplace
FOREX Signals
How to Read FOREX Quotes
Calculating FOREX Profits and Losses
Risks of FOREX Trading
FOREX Training
FOREX Trading Software
FOREX Brokers
FOREX Glossary
Forex Updates and Training
Crash Course in Forex Education
How to Recognize Patterns in Forex Trading Markets
Defining Exotic Currencies and Their Impact on Forex Markets
Defining Trading Trend and Ranges in Forex Trading
Mind Games – The Psychology of Forex Market Trading
Crossing Currency - What’s This Mean to Forex Traders
Money Management Basics for Forex Traders
Choosing Your Forex Broker
Expensive Beginner Forex Trader Mistakes
The Elliott Wave Theory for Forex Markets
Failsafe Facts to Guarantee Failure in Forex Trading
Five No Nonsense Strategies in Forex Trading
Global Expansion and It’s Reaches within the Forex Market
Hedging in the Forex Market
The Important Ways to Keep From Losing in the Forex Markets
An Overview of the Euro’s Performance in the Forex Markets
Six Trading Tips for the Forex Newbie
The Lowdown on Day Trading
Interpreting How Interest Rates Drive the Foreign Exchange Markets
The Basics of the Bollinger Band Technical Indicator in Forex Markets
Relative Strength Analysis in Forex Trading
The Basics on Understanding Forex Options
Forex Charts – What Are They and How Do You Read Them
Interpreting the Future of the Oil Marketplace and How It Affects Forex Trading
Top Five Economic Indicators that Drive Forex Trading
Rules for Trading in Forex Markets
How Does the Japanese Yen Stack Up Against the US Dollar in Forex Markets
Pivot Points in Forex
The Ins and Outs of Trying Out a Forex Demo Account
The Top Currencies to Watch in the Forex Trading Game
Defining Moments Regarding Trading Trends and Ranges with Forex
Top Ten Basic Terms in Forex Trading and Their Definitions
Forex Folklore Investment Myths in the Market
Five Economic Driving Forces that Influence Forex Trading
Day Trading All You Wish You Did Not Have to Know
Time line for Daily Forex Trading When are the Optimum Moments
Forex Relative Strength Analysis
How Forex Quotes Can Influence your Trading Tactics
Forex Market RSS Feed
FOREX Links
Privacy Statement
Contact Info
Site Map

[Valid RSS]

 

Institutional Forex Course  

"If you insist on trading forex, I will show you 3 trades that will make you 10-30% every month with 93.3% accuracy"

  • Small Initial Investment - Learn 3 trades that can take $300 and turn it into thousands of dollars every month. Anyone can do this.
  • Inside Information - Learn exactly how institutions play the major financial news reports every month. You will learn how the professionals always seem to know which direction the market is going to move before major financial news comes out and why individual traders are caught on the losing side. This course levels the playing field for average investors. 93.3% accurate!

    Review This System Here